South African Corn Falls Most in Week as Rains Expected

March 6 (Bloomberg) -- South African corn futures declined
the most in more than a week on speculation there will be better
rain in the main growing regions of the country.

White corn for delivery in July, the most active contract
fell 2.4 percent, the most since Feb. 25, to 2,217 rand ($245) a
metric ton by the close in Johannesburg. The yellow variety for
delivery in the same month dropped 2.2 percent to 2,176 rand a
ton.

Bothaville in the Free State province, where 40 percent of
the nation’s corn is grown, will receive rain from today until
March 12, according to the South African Weather Service
website. The same weather patterns are predicted for Lichtenburg
in the North West province.

“The strong downward pressure that we see today is mainly
as a result of better rain predictions in the country,” Lindy
van Blommestein, a trader at Farmwise Grains (Pty) Ltd., said by
phone from Johannesburg.

Concern about a lack of rain over the past two weeks has
resulted in prices climbing to the highest since Dec. 6
yesterday. The 14-day relative strength index for white corn
rose to 71 on March 4 yesterday. A reading above 70 is a signal
to technical analysts that the price is poised to drop.

South Africa is the continent’s biggest producer of corn.
White corn is a staple food, while the yellow variety is mainly
used as animal feed.